Sa'eed, A; Gambo, N; Inuwa, I I and Musonda, I (2020) Effects of financial management practices on technical performance of building contractors in Northeast Nigeria. Journal of Financial Management of Property and Construction, 25(2), pp. 201-223. ISSN 1366-4387
Abstract
Purpose: The purpose of this study is to assess the effects of financial management practices of small-scale building contractors on the technical performance of the contractors in the northern part of Nigeria with international best practices. Previous studies argued that the technical performance of small-scale building contractors in developing countries is poor because of insufficient cash to acquire strategic resources at the outset of a project. This continues to pose a challenge to the sustainable development of the construction industry, particularly in developing countries like Nigeria. There is, therefore, a need to identify, assess and compare the effects of financial practices of the contractors with technical performance best practices. Design/methodology/approach: The technical performance of each contractor was evaluated using a five-point Likert scale. This is used to obtain the mean technical performance levels of the contractors. A questionnaire survey was administered to the professionals in the industry who were selected by using a proportionate stratified random sampling technique. The contractors' performance was compared using ANOVA with post hoc, and the effects of contractors' financial management practices were determined using multiple regression analysis. Findings: The results of this study indicated that the contractors in Nigeria were average technical performers and there were large effects of financial management practices on the technical performance of contractors in building projects. Research limitations/implications: This study is limited to small-scale building contractors in northeast Nigeria. One of the implications of this study is that it provides the criteria for an evaluation of small-scale building contractors' technical performance in Nigeria and other developing countries that faced similar problems. Practical implications: The practical implications of this study are that it establishes the current level of contractors' technical performance and serves as an awareness of contractors' current financial practices. Social implications: This study created bases for self-evaluation of contractors' technical performance and competition among small-scale contractors in Nigeria for the enhancement of productivity particularly in rural areas for national development. Originality/value: This study emanated from the government reports and past studies in the area of performance management based on the persistence of poor technical performance of small-scale contractors in the construction industry.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contractors; financial management practices; Nigeria; performance; technical |
| Index terms: | productivity, Nigeria, strategic resource, performance management, financial management, building contractor, construction industry, rural area, best practice, sampling, sustainable development, self-evaluation, survey, developing country, multiple regression analysis, methodology, competition, Likert scale, questionnaire |
| Subjects: | Geography, health safety and environment, development economics, performance measurement, management, economics, research methods, industry analysis, statistical analysis, market analysis, land use and regional development, practitioner, data collection methods, business, economic analysis, evaluation methods |
| Topics: | Research Practice, Geographical Context, Health and Safety, Business Strategy, Roles and Professions, International Construction, Quality Management, Urban Studies, Organizational Design |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here